Legal issues of cancellation of MICE events due to COVID-19: focusing on the contractual relationship between MICE stakeholders

This study attempted to legally review the contractual relationship between MICE stakeholders in the situation of infectious diseases of COVID-19, which has never been experienced before. In a situation where the implementation of the contracts already concluded was made impossible due to COVID-19, this study focused on whether the infectious disease was the reason for ‘force majeure’ limiting liability, and if not, whether the ‘principle of change of Circumstance’ could be applied. This is a necessary work to review legal relations and reduce the possibility of potential disputes at this point in the era of “with COVID-19”.
As a result of the study, if the contents such as “spread of infectious diseases” are specified as ‘force majeure’ reasons in the contract, it can be canceled accordingly. In addition, given the seriousness and social ramifications of COVID-19, it is also believed that the situation of COVID-19 itself needs to be recognized as force majeure. If recognized as force majeure, the parties to the contract shall not be liable for damages due to the exemption of the obligation. Even if it is not recognized as force majeure, COVID-19 is considered highly likely to apply the “principle of change of circumstances”, and accordingly, the rescission of the contract may be admitted. Until now, infectious diseases have not been exemplified as force majeure reasons such as natural disasters in most trading practices or contracts, and common perceptions have also been lacking among society as a whole. Therefore, even in order to clarify the contractual relationship between the parties, it is necessary to include infectious diseases as reasons for force majeure in future contracts.